U.S. stocks are set to open slightly higher on Friday as investors pin their hopes on consumer confidence data and solid earnings from athletic shoe maker Nike Inc, although traders expected a quiet day before next week's Federal Reserve meeting. Nike Inc. , the world's largest athletic shoe company, said on Thursday its profits rose 24 percent in the latest quarter, boosted by higher sales around the world and currency-related gains. Worries about how aggressively the U.S. central bank may tighten credit and potential violence in Iraq leading up to June 30 when the United States hands over sovereignty weighed on investors. "Normally these pre-weekend sessions are cautious and it's even more intensified now with the June 30 handover date," said Larry Wachtel, market analyst at Wachovia Securities LLC. "We do get numbers out today and the University of Michigan survey should be helpful, while Nike should also be helpful. But if we get a flat day I'd be happy." The Fed's policy-setting arm meets on Tuesday and Wednesday and is expected to start a tightening cycle by raising its short-term fed funds rate by a quarter percentage point. In addition, the market is cautious ahead of the United States' handover of power in Iraq to an interim Iraqi government on June 30.
Equity index futures indicated a slightly higher open. Stock index futures for the Standard & Poor's 500, the Nasdaq 100 and the Dow industrials for September were all trading above fair value. Fair value between a futures contract and the index that it is linked to is an indication of the way traders are betting the market will open. Friday's economic news includes the final reading of first-quarter gross domestic product data, expected to remain at 4.4 percent. Also, the final reading of the University of Michigan consumer sentiment survey for June is expected to nudge higher. Data is also released on existing home sales for May. The GDP data will be released at 8:30 a.m. (1230 GMT) while the Michigan report is due at 9:45 a.m. (1345 GMT). The market should also be reassured by an easing in oil prices on Friday, after the Norwegian government ordered an end to a strike that had threatened to bring exports from the world's third biggest oil exporter to a standstill. U.S. crude oil futures were down slightly in electronic trading.
Shares in Lockheed Martin Corp. will be in focus after Titan Corp. on Thursday said it is unlikely to reach a plea agreement relating to bribery charges before a June 25 deadline, putting the $1.64 billion merger agreement between the defense companies in jeopardy. European shares eased on Friday after an unexpected fall in the German business confidence survey signaled that Europe's biggest economy was still struggling to recover. The FTSE Eurotop 300 index <.FTEU3> was slightly weaker at 1,004 points. Overnight in Tokyo, Japanese shares closed at an eight-week high on Friday, on expectations a key central bank survey due next week will show companies are strongly optimistic about business conditions. The Nikkei average <.N225> finished up 0.31 percent at 11,780.40, its highest close since April 28. The broader TOPIX index <.TOPX> was up 0.30 percent at 1,172.44. U.S. stocks closed slightly lower on Thursday. The Dow Jones industrial average <.DJI> fell 35.76 points, or 0.34 percent, to 10,443.81. The Standard & Poor's 500 Index <.SPX> dropped 3.44 points, or 0.3 percent, to 1,140.62, and the technology-laced Nasdaq Composite Index <.IXIC> fell 5.41 points, or 0.27 percent, to 2,015.57///